How much income tax do I pay in the UK?

For 2025/26, you pay 0% on the first £12,570 (Personal Allowance), 20% on £12,571–£50,270, 40% on £50,271–£125,140, and 45% above £125,140. On a £45,000 salary, your income tax is approximately £6,486 — an effective rate of about 14.4%.

What is National Insurance and how much do I pay?

National Insurance (NI) is a separate tax that funds state benefits and the NHS. Employees pay 8% on earnings between £12,570 and £50,270, and 2% above £50,270. Self-employed pay Class 4 NI at 6% and 2% on the same bands, plus voluntary Class 2 at £3.50/week.

How do student loan repayments work?

Student loan repayments are deducted from your salary at 9% of earnings above the plan threshold. For Plan 2 (most common), the threshold is £28,470 in 2025/26. On a £35,000 salary, you'd repay about £49/month. The loan is written off after 30 years.

UK Income Tax Calculator 2025/26

Q: What is the 60% tax trap?

Between £100,000 and £125,140, your Personal Allowance is reduced by £1 for every £2 of income above £100,000. This means you effectively pay 40% tax plus lose 20% of the allowance — a marginal rate of 60%. Pension contributions can help reduce income below £100,000 to avoid this.

See your take-home pay after income tax, NI, pension, and student loan.

Your salary

Annual salary

Tax code

Find on your payslip. 1257L is the standard 2025/26 code.

Pension contribution

Auto-enrolment minimum is 5%

Student loan plan

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Tax year 2025/26 (6 April 2025 – 5 April 2026). England, Wales & Northern Ireland rates.

How to Use This Calculator

Employed tab

Enter your annual salary (gross pay before tax) and tax code (1257L is the standard code for most people). If you make workplace pension contributions or repay a student loan, expand "More options" to include them — both reduce the amount of tax you owe or your net pay.

Self-Employed tab

Enter your taxable profit for the tax year. The calculator works out your income tax, Class 2 and Class 4 National Insurance contributions, and shows your take-home figure. If you pay into a personal pension or have a student loan, add those under "More options" to see their effect.

More options

Pension contribution — enter a percentage or fixed amount; it reduces your taxable income before tax is calculated
Student loan — choose your plan (Plan 1, Plan 2, Plan 4, or Postgraduate) so the correct repayment threshold and rate are applied

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The Formula

The UK uses a progressive tax band system. You don't pay your highest rate on all income — each band applies only to the income within that range.

Taxable Income = Gross Income − Pension Contributions − Personal Allowance

Income Tax = ∑ (Income in Each Band × Band Rate)

2025/26 Income Tax Bands

Personal Allowance (0%)Up to £12,570

Basic rate (20%)£12,571 – £50,270

Higher rate (40%)£50,271 – £125,140

Additional rate (45%)Over £125,140

Employee National Insurance

8% on earnings between £12,570 and £50,270
2% on earnings above £50,270

Self-employed National Insurance

Class 2: £3.50 per week (if profits above £12,570)
Class 4: 6% on profits between £12,570 and £50,270
Class 4: 2% on profits above £50,270

Example

Emma — £45,000 employed, 5% pension, no student loan

Emma earns £45,000 per year. She contributes 5% of her salary to a workplace pension and has no student loan to repay.

Employed tab

Gross salary£45,000

Pension contribution (5%)£2,250

Taxable income£42,750

Her tax is calculated across two bands:

Personal Allowance (£12,570)£0

Basic rate (20%) on £30,180£6,036

Income tax£6,036

National Insurance on gross salary:

8% on £32,430 (£12,570–£45,000)£2,594

Employee NI£2,594

Take-home pay~£34,120/yr (~£2,843/mo)

Emma's marginal rate is 20%, and her combined effective rate (income tax + NI) is around 19% — because the Personal Allowance shelters the first £12,570 from tax entirely.

FAQ

What is the 60% tax trap? ▼

When your income is between £100,000 and £125,140, your Personal Allowance is gradually reduced — you lose £1 of allowance for every £2 earned above £100,000. This means income in that range is effectively taxed at 60% (40% higher rate plus 20% from the lost allowance). It's one of the most misunderstood parts of the UK tax system. Pension contributions are a common way to bring taxable income below £100,000 and avoid the trap.

How does pension tax relief work? ▼

Pension contributions reduce your taxable income before tax is calculated. A basic-rate taxpayer effectively saves 20p in tax for every £1 contributed. A higher-rate taxpayer saves 40p per £1, and an additional-rate taxpayer saves 45p per £1. If you use salary sacrifice, you also save on National Insurance. It's one of the most tax-efficient ways to build retirement savings in the UK.

What's my tax code? ▼

The standard tax code for 2025/26 is 1257L, which gives you the full Personal Allowance of £12,570. You can find your tax code on your payslip, P60, or PAYE coding notice from HMRC. If your code is different, it usually means HMRC has adjusted your allowance — for example, to collect tax owed from a previous year or to account for employee benefits.

NI vs income tax — what's the difference? ▼

Income tax funds general government spending, while National Insurance contributions (NICs) are ring-fenced for state benefits — the State Pension, statutory sick pay, and maternity allowance, among others. They have different thresholds and rates: income tax starts at 20% above the Personal Allowance, while employee NI is 8% between £12,570 and £50,270 and 2% above that. Both are deducted from your pay, but they serve different purposes.

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